The Bangko Sentral ng Pilipinas (BSP) raises its benchmark policy interest rate by 25 basis points to 4.75% on Thursday, extending its monetary tightening cycle. The BSP acts as inflation remains elevated and continues to fall outside the bank’s stated 2% to 4% target range. While inflation eases to 6.8% in May, it is still among the highest levels in roughly three years and breaches the target range for a third consecutive month. The BSP links the decision to persistent inflationary pressures, citing elevated global oil and fertilizer prices that continue to feed into domestic fuel and food costs. Several reports describe this as the second policy rate increase for the year, bringing borrowing costs higher for banks and households. The BSP’s Monetary Board, the central bank’s policymaking body, approves the hike as part of efforts to bring the inflation outlook back toward target. The decision signals continued focus on controlling prices despite the latest easing in the inflation reading.